Human Resource Management Report: JP Morgan's Practices and Strategies

This report examines the human resource management practices at JP Morgan, focusing on key aspects such as HRM definition, strategic HRM, hard and soft HRM skills, recruitment and selection processes, and the advantages and disadvantages of internal and external recruitment. It explores the benefits of different HRM practices for both employers and employees, the effectiveness of these practices in raising profit and productivity, and the significance of employee relations in influencing HRM decision-making. The report also covers key elements of employment legislation and its impact on decision-making, along with the application of HRM within the firm. The report provides a comprehensive overview of HRM strategies and their practical implications, emphasizing employee engagement and organizational success.

Human Resource Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1. What it's HRM....................................................................................................................1
2. Strategic HRM ...................................................................................................................4
3. What is Hard HRM and Soft HRM....................................................................................7
4. About Global Context.........................................................................................................8
5. What it's recruitment and selection? about weaknesses and strengths.............................10
6. Internal and External recruitments, advantage and disadvantage....................................10
TASK 2..........................................................................................................................................11
P3 Benefits of different HRM Practices within organization for employer and employee..11
P4 Effectiveness of different HRM practices to raise the profit and productivity...............12
TASK 3..........................................................................................................................................13
P5 Importance of employee relations in respect to influence HRM decision-making.........13
P6 Key elements of employment legislation and its impact on decision-making................14
TASK 4..........................................................................................................................................14
P7 Application of HRM........................................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Human resource management is a strategic approach to manage the organization's
activity in an effective way. It aid to support the workers in order to gain the competitive
advantage. HRM refers as a department of the company which designs a policies to maximise the
employee performance with an objective to reach the goals. The HR is responsible to develop the
employee benefits policies, recruitment, training and development, performance appraisal and
rewarding (Hendry, 2012). They ensures that organization can achieve its targets successfully
through hiring the efficient people who are most qualified to attain the prosperity. The report is
based on the JP Morgan Firm which is situated in central London that analyses the HR practices
for the employee engagement and to sustain the business in competitive advantage. To
accomplish these practices the report comprises of HRM definition, strategic HRM, hard and soft
skills of human resource managers, strength and weaknesses of recruitment and selections along
with internal and external approaches. In addition it also includes the effective HRM practices to
raise the organization's profit and productivity, importance of employee relations, employment
legislation and application of HRM.
TASK 1
1. What it's HRM
Human resource management is a term that describes the formal system of the
management within the a company. In JP Morgan Firm the human resource management put
their effort to manage the employee in an effective way that they can be utilise as the most
important resources to increase the production that can bring the profit to the organization.
Purpose of HRM
HRM is a separate department in every company that has purpose to conduct such
services for the benefit of certain firm. In JP Morgan the human resource professional has core
purpose of human resource management that are as follows -
 Establishing culture – One of the most important purpose of HRM is develop a good
working environment in the organization because it is essential to provide a good
environment to the employees through maintaining decorum of the company (Bratton and
Gold, 2017).
 Legislation – The human resource management develops the rules and laws for a JP
Morgan that are followed by the employees in any circumstances. This makes the
working process smooth and effective that's why the organization can attain the target.
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 Internal customer management – HR officer has several purposes within JP Morgan it
encourages and motivates the employees because the productivity of the organization
depends upon the quality of its workers (Brewster and Hegewisch, 2017). The human
resource manager defines and implements the policies and processes to recruit the quality
of the workforce by attracting them. It is directly related with the company's financial
performance and according to that they forms some policies for employee compensation,
benefits and team structure. HR establishes internal customer relationship to serve the
best quality of products and services.
 Metrics – Human resource professionals needs to maintain an interaction with all the
levels of an organization because a manager aligns all the activities within an
organization. The HR management of JP Morgan analyse the operations and activities of
the firm and then it needed it hires the employees to attain the goals and objectives. They
also measures the strategic matters such as budget plans and performance goals of the
company in order to embrace the strength and weaknesses of the company. It needs to
recognise to estimate the requirement of human resources which can provide the quality
work for JP Morgan.
Functions of HRM
The human resource management has some specific function in JP Morgan firm which
support to the growth of the company. The functions are as follows -
 Recruitment and selection – The HR of JP Morgan can recruit the candidates the which
are qualified according to the job role. It is process of attracting, screening and selecting
potential aspirants according to the designation job requirements. Recruitment attracts
the candidates and encourage qualified applicants to serve the best.
 Maintaining good working conditions – It is a one of the major responsibilities of
human resource management to develop a good working environment at the workplace.
They encourages and motivates the workers of the company to enhance their performance
with increasing productivity (Armstrong and Taylor, 2014). It is important because the
employees are the main source of the firm to generate profit and therefore, the HR forms
a system with a financial and non- financial benefits for the employees that can make
make a strong relationship between the organisation and subordinates. This enhances the
job satisfaction of the employees and motivates them to work efficiently and effectively.
 Training and development – Training and development has a significance for human
resource management because it is an effort to amend the present and future performance
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of the employees in JP Morgan firm. Training and development improves the ability of
the employees through increasing their knowledge and skills.
 Managing employee relations – Employees are the major pillars of an organization and
they are foremost resources that performs the activities to attain the goals. Management
needs to organize such activities that can be helpful to know an employee on personal
and professional level (Briscoe, Tarique and Schuler, 2012). JP Morgan should organize
the events which can boost up the relationship between the employer and employee.
Roles and responsibilities of HRM
The roles and responsibilities falls in to three major categories such as staffing, employee
compensation and designing or defining the work. Through all of these three responsibilities they
fulfil the purpose of human resource department role at JP Morgan firm as they contributes to
increase the productivity and profit by optimizing the effectiveness of employees. Along with
these there are some other roles and responsibilities that are mentioned as :
 Payroll management – Human resource management look after the compensation and
benefits and it conducts the research to analyse the salary trends and pay practices in the
current market for the formulation of strategies and compensation plans. It prepares the
strategies for provident fund, gratuity, medical insurance, tax deductions,
reimbursements, bonus, incentives, etc. All of these are covered in pay roll and modifies
according to the government rules.
 Conflict resolutions – In JP Morgan firm there are different types of people who came
from diverse background, education qualification and culture. Because of that there are
chances to arise conflicts among the employees. It is a duty of the human resource map
the solutions of the problems that has the possibility to rise between the employees and
employer (Daley, 2012). The managers ensures that there is no discrimination among the
employees and none of the activity of the organization will become a reason of employee
disappointment.
 Appraisal and performance management – Human resource management timely gives
appraisals to the employees according to the policies of JP Morgan. In order to give
appraisals they evaluates the performance of the employees, feedbacks and suggestions
then they generate the reports and report to the administrative authority and then
promotes the employees. This aid to support the employees through motivating them to
put a step forward to accomplish their goals along with the firm's goals.
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2. Strategic HRM
Strategic human resource management refers to link the human resources with the
strategic goals and objectives to improve the organization performance and develop the culture
which can accelerate innovations, flexibility and competitive advantage. In SHRM an
organization involves the HR functions with a strategies to formulate and implement the JP
Morgan's strategies through the human resource management activities that includes recruitment,
selections, training and development of the personnel (Huselid and Becker, 2011). SHRM can be
define as a part of strategic plan which means to define company's plan that matches its internal
strength and weaknesses along with its external opportunities and threats that can maintain a
competitive advantages. The core focus of strategic human resource management is to
differentiate JP Morgan firm from it's rivals.
Purpose of SHRM
There are some basic purpose of SHRM which specifies its need in JP Morgan company
and that are as follows -
 The first and foremost purpose is that it is concentrated on actions that distinguish a firm
from the others.
 It renders an idea to allocate the organizational resources to the most applicable
employees to produce better outcomes.
 It develops a base in the organization in order to attain efficient business benefits,
structure, culture, ethical values among the employees and effectual communication
strategic plan for human resource management.
 It involves in employee recruitment, hiring and training and development processes
(Jackson, Schuler and Jiang, 2014).
 SHRM takes an organization on the new level, integrates HR workflow, defines new
goals and it aligns employees to attain the goals and objectives.
Importance of the SHRM
 SHRM aid to support in achieving the cost – effective engagement of its employees
through analysing its major resources an activities.
 It enables the firms to meet the changing trends of the market through embracing the
existing requirements.
 Strategic human resource management clearly sets the goals and gives the direction to
attain the goals with the future expectations.
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 The SHRM can help JP Morgan in planning and executing organizational changes in
activities.
 One of the major significance of SHRM is that it ensures optimum utilization of
organizational resources (Guest, 2011).
Characteristics of strategic human resource management
Strategic HRM has some characteristics that are stated below -
Recognition of the outside environment - There are some outside factors in the
environment which offers some opportunities and threats to JP Morgan firm and that aspects can
be define as laws, economic conditions, social and demographic change, domestic and
international political forces and technology. These external factors can impact on the
organization in both positive and negative manner and therefore, strategic human resources
strategy identifies the threats and opportunities in every field. It focuses on enhancing the opp
and reducing the effects of threats.
The impact of Competition: Competition has a significant impact on the JP Morgan
through captivating, rewarding, and utilizing the employee. The competition forces plays an
important role in the local, regional and national labour markets. Strategic human resource
management decision can be affected by labour markets dynamic situations that includes wage
rates, unemployment rates, working conditions, benefits levels minimum wages legislation and
competition.
Long range focus : The strategic human resource of JP Morgan should be pivoted on
long term goals cause strategic human resources policies should support to the future objectives.
Because it is not easy to modify the strategic human resource policies that's why it is essential to
take care the policies for long time.
Choice and decision-making focus : The strategies focuses on problem solving as it
concentrates on questions such as 'what should an organization do and why'. This is an action
orientation process which requires a decision should be made and carried out (Marler and
Fisher, 2013).
Thinking of all personnel: The traditional human resource management pins on hourly
employees whereas strategic HRM approach considers about the entire workforce of the JP
Morgan not just on the hourly employees of the firm.
The key concept of strategic management is to coordinate the entire resources of JP
Morgan firm which also includes human resource management. All the activities should be
carried out in a strategic manner to reach towards the aim.
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Difference in HRM and SHRM
SHRM comes out as a branch of HRM with some extension of purposes and functions and that
can be define as -
Human Resource Management Strategic Human Resource Management
 HR or human resource management
governs the organization employees in
a structured manner to carry out the
task.
 Human resource management is
reactive in nature (Cascio, 2018).
 The HRM responsibilities lies with
staffing, recruitment, training and
development.
 Human resource managers comply with
the fragmented approaches which
stresses on management principles to
manage the people in organization.
 It emphasizes on employee relations,
employee motivation along with the
necessary laws to run JP Morgan
successfully.
 It supports to achieve the short term
goals.
 They pursues the transactional
leadership style as they plays a role of
change follower.
 Whereas the SHRM directs the
employees to put their effort to attain
the goals with a framed HR strategies.
 On the other hand, the SHRM is a
active management function.
 In SHRM managing the task force is
endows in the line managers.
 But the SHRM follows an integrated
approach which involves the strategies
and HR practices of the JP Morgan.
 Conversely, the SHRM centered to the
partnership of internal and external
legislations.
 Strategic HRM aid to meet the long
term goals.
 It is a change leader as it is an imitator
that seeks for transformational
leadership.
The strategic human resource management plays an important role in JP Morgan as it
relates the practices and policies with integration for the growth of the company.
3. What is Hard HRM and Soft HRM
HRM is an essential and important function for an organizational success. There are two
kinds of skills in HRM that comprises of hard and soft HRM. The hard HRM comprises of
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manpower planning, job analysis, selection and recruitment, compensation and benefits,
performance evaluations, contract negotiations and labour legislations. Whereas the soft skills
includes organizational development, conflict management, human resource education,
leadership development, organizational culture, and developing relationship (Albrech, 2011).
The hard and soft HRM both are plays an important role for the growth of JP Morgan firm.
Hard HRM : The hard human resources can be define as employment management
system that considers the employees as a assets and resources which needed to be controlled to
the expected profit and competitive advantage.
Soft HRM : On the other side, soft human resources management system in which
workers are considered an important resource for the company development. They look after the
employees and improve the knowledge and skills of employees.
Hard HRM Soft HRM
 Human resource measurement has hard
metrics which are used as quantitative
data points in order to evaluate their
assigned work on the daily basis to
measure the completion time of the
task.
 It treats employees as a resource such
as machinery and land that are the core
assets of the company. The purpose to
treat the employees as resource because
it generates the output that is valuable
for the company.
 The hard skills are strongly related with
the corporate business planning which
refers to what kind of resources JP
Morgan would be needed and in order
to gain this it requires to identify the
cost which needed to be spend.
 The core focus of HRM is to recognize
the workforce needs for the present
 On the contrary, soft HRM uses the soft
metrics which pins on the qualitative
measurement which depends on the
subjective data and interactive
responses in order to determine
employee effectiveness. It forces on the
affect of human capital on the business
outcomes. The core purpose of soft
HRM is to focus on the employees who
have skills and satisfaction that creates
a productivity and healthy environment
for the employer and employee.
 The soft HRM is the most crucial
resources for JP Morgan and a source
of competitive advantage.
 In JP Morgan with soft HRM all the
employees are treated as individual
person and their needs are also taking
care of according to the plan.
 Soft HRM look after their employees
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conditions. They can recruit train the
employees according to the
requirements (Renwick, Redman and
Maguire, 2013).
 It key features includes the short term
changes within the employees such as
they can recruit and fire the employees
when it is required during some
specific circumstances. For an example,
when JP Morgan needs some
employees for the particular project at
that time they can hire the employees
but in some circumstances if the
employees found guilty according to
the rules of the firm then they have the
right to dismiss the employee.
 Hard HRM's appraisal system focuses
on the judgement of the employee
performance, knowledge, skills and
behaviour while working in JP
Morgan.
through caring about their needs, roles,
rewards and motivations because they
are the prominent part of the
organization achievements. Employees
are putting their efforts to attain the
organizational goals and objectives and
that's why they are libel to get the
reward for their support.
 The key feature of soft HRM is that it
solely focused on the long term
workforce planning with a strong and
two way communication.
 Its appraisal system concentrated on
recognizing and addressing training and
employee development requirements.
4. About Global Context
With the globalization, every organization whether it is small or big were ceased be
global but now they all have become global (Nickson, 2013). The globalization has increased
workforce diversity and culture sensitivity. All of these things developed the need of global
human resource management. This is beneficial for those organization that were considered as
immune for the transactions beyond the geographical boundaries but now they are connected
across the world.
Objectives of global HRM
 The core objective of the global HRM is to create a local appeal without compromising
upon the global identity.
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 The second objectives of the global HRM is to create the awareness for cross cultures
among the managers and staff. Culture sensitivity is required to balance the culture in the
organization when employees are hired across the geographical boundaries.
Strategic role of Human resources Management
There are some strategic role of Human resources Management in a such a way which
ensures HRM policies support with the firm's strategies, structure and controls. There are some
factors that impacts on the global context and that are as follows -
Decision making : There is specific degree of centralization to operate the decision
making. When it is compare with the international strategy then the core competencies are
centralized and the remaining are decentralized.
Co – ordination : There is a requirement of coordination for the cross culture sensitivity
and therefore, there is need of culture control.
Global HRM and the Staffing Policy
There is no difference in hiring the workforce for the organization. The hiring process is
still focused on the requirements of particular job role, like skills, knowledge and qulaifiacation.
The organization can hire the individuals according to their requirement of job description. The
fundamental need for recruitment is common across the glob the only thing which is changed is
culture (Budhwar and Debrah, 2013). Besides that the organization can select any of the below
policy to hire the aspirants according the global policies -
Ethnocentric: Ethnocentric is the act to judge another culture which is based on the
thought that are found in values and standards of one's own culture.
Poly centric: In poly centric staffing policy refers to the host country manages the
subsidiaries whereas the headquarter position are held by the parent company nationals.
Geocentric: In geocentric policy the employer can hire the employees irrespective of
their nationalities. It builds a strong culture across the boundaries with strong bond to produce
high productivity.
Global HRM is very challenging with respect to the HRM, if one of can strike the right
chord in designing structures and controls then it is near to achieve.
5. What it's recruitment and selection? about weaknesses and strengths
Recruitment – it can be define as searching and obtaining large number of desired
candidates along with skills, experience and knowledge. For allow an organisation for select best
appropriate candidate for fill job vacancy for right position. In this, the main motive of
recruitment process is to identify best applicant among mass of the people and select suitable
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